Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1887-02-20
Tho P,dflIes The Debt.

We are glad TO get the 1olloWlnS iull
reply to an article which We published
yesterday, and commented upon briefly
To the Editor of the Dispatch:
Your correspondent from Amherst
Courthouse says the price of Riddleber-
gers is kept up by Virginia's yearly
purchase of these securities. But the
State has not bought a Riddleberger
bond for five months-not since Sep
TENDER %, 1886. AT that date Riddle
bergers were quoted at 67a to 68t.
To-day they are sold at co. to Coz,
having gone steadily up and with
very little fuctuation from AZ to 80
their price October 16, 1882, the date
of their first quotation on the market.
On September %, 1882, consol cou-
pons were worth 59@a60. October
10th, funding having begun, they fell
TO 57@5S. To-day consols of 1882,
fundable into Riddlebergers at par, are
worth So. Consols, January, 'S3, to
January, 'S5, inclusive, and fundable at
so per cent. discount, are worth 81, say
one half the price of Riddlebergers.
But there is still third class of con-
sol coupons, those that have been repu-
dated bv the act of November 29, 1884,
commonly called the Wickham amend
ment. which commands that no allow
ance shall be made in funding for any
coupons maturing between the LIST day
of January, 1885, and the date Of err
chanqe OF said bonds. These coupons,
having no fundable value, are not
quoted ON the market at ALL
This is not the first time this mistake
has been made. In the last fiscal year
for a period of eight months not a
bond was purchased or bid for, and
Riddlebergers went up in that time at
the rate of II per cent. per annum.
See Richmond Dispatch of June %,
1886: though GA Member of the
Legislature predicted that if the policy
was abandoned they would recede to Al
in less than thirty days.
This may be fit occasion for calling
attention to cognate matter-the re
lation between the Riddleberger anC
consol bonds. The funding of Riddle
bergers commenced September %
! 1882.
September %, 1882, consol bonds were
quoted. sOo;3 t5'']
October Is, 1859, consol bonds were
| quoted ..................... ......-.:'O' @0o
October 1G, 1882, Riddieborger bonds
were quoted 800. 80 10 Wv
September ~, 1856. consol bonds were
september OFFENDER: %, 1855, Riddieberger
bonds were quoted ..............."..6 'HCsoS@
Why should q good 6 per cent. con
sol bond, with tax-receivable coupon
attached. and all the courts decision
claimed to be in its favor, bring onl.
| 80 to-day, when Riddleberger B pc
cent will bring 65s to 65s? 1t l
readily seen that the consol ought t
be worth twice as much. Why Is
not? Because the tax-receivable cou
pom is not paid.
Now. if notice was given by con
stitutional amendment that all bond
not funded by given date shoul'
never be funded at all, and that tn
Riddleberger bill would be repealed
why should they have any more vaiu
on the market, why should they b
any more quoted on the market, tina
the repudiated tax-receivable coupons
And what would be the market valu
of a tax-receivable coupon whose bon
had no market value at all ? Ask
broker.
This is called State reputation b
the very excellent gentlemen who IT
pudlate one half of their own ifidividui
indebtedness TO the State by buying
coupon at half price from the il-use
= bondholder whose cause they espous(
Such an amendment is not Reputation
1t will prevent reputation by forcln
the bondholders to fund in the Riddle
berger bonds-that class of securitit
) which both parties have agreed to offe'
IT is intended to prevent Reputation
! for so, sura as he sun shines, If th'
. amendment is not adopted, the ne,
step of the people will be
, wipe out all the debt but the Ri
4 dlebergers. They are Justly exasperate
2 now at the conduct of the bondholde
1 and their lawyers and the judges OF I'll
1 Supreme Court of the United States
they are straining at the leash " AL
the best friends OF the bondholder a.
the men who despise them, as | d
i vet would force them to fund befo
e that exaspeation is expressed in an a
: os absolute and irretrievable aud Just
fable reputation. PRACTICAL.